Gujarat draws Rs 1.24 lakh crore semiconductor investment

Story by  ANI | Posted by  Ashhar Alam | Date 04-07-2026
Gujarat Chief Minister Bhupendra Patel
Gujarat Chief Minister Bhupendra Patel

 

Gandhinagar 

Gujarat has attracted investments worth about Rs 1.24 lakh crore across six semiconductor projects approved under the India Semiconductor Mission (ISM), with the projects expected to create more than 50,000 direct and indirect employment opportunities.

Gujarat has emerged as India's leading semiconductor hub after becoming the first state in the country to introduce a dedicated semiconductor policy offering comprehensive support to the sector.

The six semiconductor projects approved in Gujarat under the India Semiconductor Mission include Tata Electronics, Micron Technology, CG Power & Industrial Solutions, Kaynes Semicon, Suchi Semicon and Crystal Matrix, said a release. Micron Technology and Kaynes Semicon have already established Outsourced Semiconductor Assembly and Test (OSAT) facilities at Sanand GIDC. The two facilities, inaugurated by Prime Minister Narendra Modi earlier this year, are now operational.

The investments are aimed at strengthening India's semiconductor manufacturing capabilities and reducing dependence on imports in line with the Centre's vision of building an Aatmanirbhar Bharat under the 'Make in India' initiative.

The release further stated that CG Semi will commence commercial production at its OSAT facility from July 5, marking another milestone in Gujarat's semiconductor manufacturing ecosystem. Suchi Semicon's pilot OSAT plant is already operational in Surat, while its full-scale OSAT facility has also been approved under the India Semiconductor Mission.

Meanwhile, Tata Electronics' semiconductor fabrication (Fab) facility at Dholera is in an advanced stage of construction and is expected to become India's first commercial semiconductor foundry. Crystal Matrix has also received approval under the mission to establish the country's first commercial mini-and micro-LED display fabrication and packaging unit at Dholera Special Investment Region, with construction expected to begin shortly.

In addition to the approved semiconductor projects, a broader semiconductor ecosystem is rapidly shaping up in Gujarat through the growth of supporting industries and allied infrastructure. Several global and domestic companies have already established operations in the state or announced plans to do so, including Linde, Taiwan's TSMT, Japan's TNSI, Fujifilm, Nippon Express, Germany's Infineon Technologies, Malaysia's Hotayi, among others. Their presence is helping create an integrated semiconductor cluster capable of supporting large-scale fabrication and packaging work.

The Gujarat Electronics Policy, aligned with the Government of India's SPECS (Scheme for Promotion of Electronic Components and Semiconductors) , further strengthens this ecosystem by supporting the entire value chain of semiconductor and electronics manufacturing. This includes component manufacturing, semiconductor fabrication, packaging and testing facilities, as well as material suppliers, equipment providers, and manufacturers of ultra-high purity gases and speciality chemicals required for the sector.

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Notably, the Union Finance Ministry has recently approved an outlay of Rs 1.25 lakh crore for ISM 2.0, which is expected to be placed before the Union Cabinet for final approval. This will further deepen India's semiconductor capabilities and accelerate sectoral growth. Through financial incentives, infrastructure support, ease of doing business initiatives, ecosystem-building measures, and transparent governance, Gujarat aims to emerge as a globally competitive semiconductor hub, contributing significantly to the objectives of the National Semiconductor Mission.